Forex Today: WTI Crude Oil Breaks $72.50

Adam Lemon

Crude Oil and U.S. and European stock markets are powering up to new record high prices.

  • Major U.S. stock market index the S&P 500 again made a new all-time high price yesterday. This suggests we will be likely to see still higher prices over this week. Global stock markets are generally looking mostly bullish too, especially in Europe.
  • WTI Crude Oil advanced again to make a new high yesterday above $72.50. This strong rise to new 2.5-year high prices is indicative of relatively strong global demand and economic growth.
  • Gold remains weak, and is trading near its 1-month low price.
  • The Forex market is seeing the euro as the strongest major currency right now, with the Japanese yen clearly the weakest.
  • U.S. retail sales data released yesterday came in worse than expected, showing a month-on-month decline of 1.3%.
  • Today will see the U.S. FOMC release its statement, projections and federal funds rate. This is typically the event that moves the Forex market the most, so we can expect major volatility in the market later today.
  • We will also be getting releases of New Zealand GDP and Australian employment data.
  • Last week saw a sixth consecutive weekly fall in global new confirmed coronavirus cases and deaths, suggesting that the current wave of the pandemic is starting to retreat. The effects of the vaccination programs in the most developed economies are now being felt.
  • It is estimated that 20.8% of the world’s population has received at least one vaccination against the novel coronavirus.
  • Total confirmed new coronavirus cases worldwide stand at over 177.4 million with an average case fatality rate of 2.16%.
  • The fastest progression in terms of immunizing a population against the coronavirus in all but the smallest states have been in Canada, which has given at least one shot to 65% of its respective populations, followed by Bermuda, Israel, Iceland and Bhutan at 64% to 63%. For most of the world, a vaccine still remains distant. However, the pace of vaccination in the European Union, which now has immunized 44% of its population, has picked up significantly. In the U.S., 52% of the population has been vaccinated.
  • The rate of new coronavirus infections appears to now be increasing most quickly in Afghanistan, Bangladesh, Bolivia, Cuba, Fiji, Guatemala, Honduras, Indonesia, Iraq, Kenya, Kuwait (despite its very high level of vaccination), Mongolia, Oman, Panama, Russia, South Africa, Tunisia, the U.A.E. (despite its very high level of vaccination), and Vietnam.
  • Although the U.K. has one of the world’s highest proportion of vaccinated people, it is seeing a sharp rise in the number of new coronavirus cases. The U.K. government has delayed plans to reduce virus restrictions by one month. It is believed the Delta (Indian) variant accounts for the vast majority of new cases in the U.K. now.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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